The Permanent Secretary and Secretary to the Treasury (PSST), Dr. Ramathan Ggoobi, has described Uganda’s FY2026/27 National Budget as a “good big budget” that presents significant opportunities for citizens and businesses to drive economic transformation and prosperity.
Speaking at the 5th Edition of the Absa Post Budget Dialogue held at Kampala Serena Hotel on Friday, Ggoobi defended the Shs 72 trillion budget presented by the government, highlighting strong revenue growth, strategic investments, and sweeping reforms aimed at accelerating Uganda’s economic development.
“The budget we presented yesterday is a good big budget with many opportunities for Ugandans to harness,” he said.
Ggoobi revealed that domestic revenue collections are projected to reach approximately Shs 45 trillion in the next financial year, providing a substantial contribution toward financing the country’s discretionary budget estimated at about Shs 57 trillion.
According to him, 95 percent of discretionary resources have been allocated to the government’s priority sectors under the ATMS framework and other critical economic enablers.
He emphasized that the budget is anchored on increasing production and productivity, promoting value addition, expanding exports, and creating jobs for Uganda’s growing population.
Central to the FY2026/27 budget is the implementation of reforms designed to support the government’s ambitious Tenfold Growth Strategy.
Ggoobi said the reforms target longstanding challenges including wasteful expenditure, corruption, bureaucratic delays, and inefficiencies in public service delivery.
Beginning in FY2026/27, Accounting Officers will be required to sign a Budget Discipline and Accountability Charter, which will form part of their performance contracts.
The charter introduces strict accountability measures and sanctions for breaches of public finance management rules in planning, budgeting, and execution.
“We are enforcing budget discipline and accountability because every shilling must deliver value to the taxpayer,” he said.
The government also plans to intensify anti-corruption efforts, particularly in public procurement, through reforms that enhance transparency, accountability, and efficiency.
Other reforms highlighted include strengthening governance structures, improving oversight, and enhancing the performance of state-owned enterprises, as well as enforcing trade order to support fair competition and economic growth.
Addressing criticism that Uganda’s economic growth has not translated into improved livelihoods for many citizens, Dr. Ggoobi strongly defended the country’s macroeconomic performance.
“It is foolhardy for anyone to say that Uganda’s economy is not growing,” he said.
“The economy is doing well at a macro level. What do you see about inflation, the exchange rate, availability of foreign exchange in the country, and the growth of economic activity itself? The indicators show the economy is moving in the right direction.”
Ggoobi pointed to robust diaspora remittances as evidence of confidence in Uganda’s economic prospects.
He disclosed that Ugandans living abroad remitted approximately US$2.8 billion (about Shs10 trillion) over the 12 months ending March 2026.
“These are our relatives who are out there and have decided to bring their money home. That is a vote of confidence in the economy,” he said.
Ggoobi noted that diaspora remittances have become one of the country’s leading sources of foreign exchange, second only to Foreign Direct Investment (FDI).
“Ugandans have now overtaken portfolio flows and are now number two after FDI in bringing in these dollars. That is a vote of confidence, especially in an election year,” he added.
Despite positive macroeconomic indicators, many Ugandans continue to express concerns that economic growth has not translated into tangible improvements in household incomes and living standards.
Critics argue that rising living costs and stagnant purchasing power have created a disconnect between GDP growth figures and everyday realities.
Ggoobi acknowledged these concerns, admitting that while macroeconomic stability has largely been achieved, more work remains to ensure ordinary citizens directly benefit from economic expansion.
“We want that macro picture to come down now to the microeconomics,” he said.
To address this challenge, the government plans to roll out significant tax policy and public finance reforms beginning in the next financial year.
Under the Domestic Revenue Mobilisation Strategy, government intends to broaden the tax base, strengthen compliance, and reduce tax evasion across the economy.
Dr. Ggoobi explained that the Uganda Revenue Authority (URA) will adopt a more comprehensive, whole-of-government approach to tax administration rather than focusing narrowly on registered taxpayers.
“We are going to have key reforms in tax policy and the broader policy area. These reforms are intended to improve revenue mobilisation and strengthen economic governance,” he said.
While acknowledging that the reforms will not yield immediate results, he described them as a critical step toward transforming Uganda’s revenue collection system over the long term.
Speaking during the dialogue, ABSA Uganda Chief Financial Officer Michael Segwaya welcomed the government’s budget priorities, saying they provide a strong foundation for sustained business and economic growth.
Segwaya highlighted the projected acceleration in economic growth from 6.6 percent to 10.4 percent as a sign of confidence in Uganda’s future.
He particularly praised the focus on agro-industrialisation, mineral-based industrial development, science, technology, and innovation as strategic sectors capable of generating jobs and boosting value addition.
“The projected acceleration in economic growth from 6.6 percent to 10.4 percent reflects a strong sense of ambition and confidence in Uganda’s future,” he said.
Segwaya also applauded the government’s fiscal consolidation efforts, including plans to reduce domestic borrowing from approximately Shs11.4 trillion to Shs9 trillion.
According to him, lower government borrowing could ease pressure on domestic credit markets and improve access to affordable financing for businesses.
Segwaya further welcomed the government’s commitment to increasing payments toward domestic arrears from Shs200 billion to Shs1.4 trillion.
He described the move as a major boost for business liquidity, continuity, and investor confidence.
“This is not simply a fiscal issue; it is a matter of liquidity, business continuity, and confidence in the broader economy,” he said.
Segwaya emphasized that successful implementation of the budget would ultimately determine whether its ambitious objectives are achieved.
“We recognize that a budget is more than a statement of intent. It is about translating policy into practical outcomes and understanding what that means for businesses and citizens,” he said.